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WuXi BiologicsCompany Presentation
(Stock Ticker: 2269.HK)
2017 Annual Results
March 2018
This presentation may contain certain “forward-looking statements” which are not historical facts, butinstead are predictions about future events based on our beliefs as well as assumptions made by andinformation currently available to our management. Although we believe that our predictions arereasonable, future events are inherently uncertain and our forward-looking statements may turn outto be incorrect. Our forward-looking statements are subject to risks relating to, among other things,the ability of our service offerings to compete effectively, our ability to meet timelines for theexpansion of our service offerings, and our ability to protect our clients’ intellectual property. Ourforward-looking statements in this presentation speak only as of the date on which they are made,and we assume no obligation to update any forward-looking statements except as required byapplicable law or listing rules. Accordingly, you are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. All forward-lookingstatements contained herein are qualified by reference to the cautionary statements set forth in thissection.
2
Forward-Looking Statements
3
We have provided adjusted net profit, net profit margin, EBITDA, EBITDA margin and diluted earningsper share for the first half of 2016 and 2017, which excludes the share-based compensation expenses,Listing expenses and a foreign exchange loss due to translation loss from the IPO proceeds, and arenot required by, or presented in accordance with, IFRS. We believe that the adjusted financialmeasures used in this presentation are useful for understanding and assessing underlying businessperformance and operating trends, and we believe that management and investors may benefit fromreferring to these adjusted financial measures in assessing our financial performance by eliminatingthe impact of certain unusual and non-recurring items that we do not consider indicative of theperformance of our business. However, the presentation of these non-IFRS financial measures is notintended to be considered in isolation or as a substitute for the financial information prepared andpresented in accordance with IFRS. You should not view adjusted results on a stand-alone basis or as asubstitute for results under IFRS, or as being comparable to results reported or forecasted by othercompanies.
Use of Adjusted Financial Measures (Non-IFRS Measures)
I. Result Highlights
II. Company Introduction
III. Financial Overview
Appendix – Company Information
4
Agenda
`
I. Result Highlights
6
2017 Overview: Revenue and Backlog
Robust revenue growth, increasing by 63.7% YoY to RMB1,618.8 million in 2017 fromRMB989.0 million in 2016
78.3% YoY U.S. revenue growth to RMB900.6 million
209.5% YoY EU revenue growth to RMB65.3 million
Phenomenal growth in total backlog including both service backlog and upcoming potentialmilestone fees. Service backlog enjoyed a strong increase of 97.5% from US$241 million in2016 to US$476 million in 2017, while upcoming potential milestone fees surged fromUS$24 million in 2016 to US$1,002 million in 2017
Continuing to solidify competitive track record: global market share increased from 1.8% in2016 to 2.4% in 2017 while Chinese market share increase from 48% in 2016 to 63.5% in 2017
Successful execution of business development initiatives in the U.S., Europe and China
Remarkable growth of our integrated projects from 103 in 2016 to 161 in 2017
Substantial growth of our late phase (Phase III) projects from three to eight: late phase projectsinvolve more process development and large-scale manufacturing resulting in a greater backlog
Another deal signed with an undisclosed company in December 2017 with milestone paymentsof US$118 million together with mid-single digit royalties: US$6 million milestone paymentexpected in 2018
7
2017 Overview: Profitability
Gross margin increased by 150 bps YoY to 40.8% in 2017, vs 39.3% in 2016, despitedownward pressure from the startup of our new manufacturing facility (MFG2)
Increased high-margin milestone revenue
Improved capacity utilization and higher operational efficiency
Net profit increased by 79.0% YoY to RMB252.6 million. Excluding the impact of anunrealized foreign exchange loss due to a translation loss from the IPO proceeds ofRMB74.3 million, net profit increased by 131.7% YoY
Adjusted net profit1 increased by 85.1% YoY to RMB408.1 million
Net profit margin expanded 130 bps to 15.6% and adjusted net profit margin expanded 290bps to 25.2%
Higher gross margin
Effective cost controls
Diluted EPS increased by 46.7% YoY to RMB0.22 in 2017 from RMB0.15 in 2016
Adjusted diluted EPS increased by 52.2% YoY to RMB0.35 in 2017 from RMB0.23 in 2016
Note: 1. Adjusted net profit excludes the share-based compensation expenses, Listing expenses and a foreign exchange loss due to translation loss from the IPO proceeds
8
2017 Overview: Cash
Net operating cash flow improved to RMB360.3million in 2017 as compared to RMB81.9 million in2016, representing 339.9% YoY growth
Raised net proceeds equivalent to approximatelyRMB3,437.8 million from successful listing on theMain Board of the Hong Kong Stock Exchange inJune 2017
As of December 31, 2017, the balance of unutilizednet proceeds was RMB1,858.0 million
As of December 31, 2017, bank balances and cash,fixed deposits and financial assets amounted toRMB2,060.0 million in total
No outstanding borrowings as of December 31,2017
9
2017 Operational Highlights
30,000L cGMP manufacturing facilities using disposable bioreactors (MFG2) commencedcommercial operations in December 2017
First run directly as cGMP run successfully completed
Utilization rate is expected to be approximately 40% in 2018 and over 80% in 2019, as wecontinue to execute our successful “follow-the-molecule” strategy
7,000L clinical manufacturing facility in Shanghai (MFG3): on track to be operational byApril 2018
More than double existing clinical manufacturing capacity
Out-licensing of the Fully Human PD-1 Antibody (GLS-010) to Arcus Biosciences
US$18.5 million upfront payment received in 2H 2017
Total of US$816.0 million in milestone payments and up to 10% royalty
Exclusive manufacturer for GLS-010
Three-year exclusive partnership for developing Arcus’ biologics portfolio
Currently Phase I Clinical Trial ongoing in Australia and U.S. IND expected in 2018
10
2017 Operational Highlights (Cont’d)
U.S. FDA completed a Pre-License Inspection (PLI) of our Wuxifacility
First PLI completed in China
Validated both our global cGMP quality and our pioneering useof disposable bioreactors for commercial manufacturing
Continuous improvement on project timeline generatingcompetitive edge
Reduced IND enabling timeline to 15 to 18 months, and incertain circumstances as short as 9 months, as compared to theindustry norm of approximately 18 to 24 months, creating acompetitive advantage for us, but also significant benefits forour customers, and most importantly, patients
Recent Achievements
11
On March 6, 2018, the U.S. FDA granted approval for Ibalizumab (Trogarzo), markinganother major milestone for WuXi Biologics
First commercial manufacturing project showcasing success of our “follow-the-molecule”strategy
First FDA-certified cGMP biologics facility in China
Fully validated our premier quality system as well as pioneering adaptation of single-usedisposable technology for commercial manufacturing
Added to the Hang Seng Composite LargeCap & MidCap Index and included in the Shanghaiand Shenzhen Stock Connect
12
World-Class Talent
Dr. Chiang Syin, former FDA Associate Country Director, joined WuXi Biologics as ChiefQuality Officer in January 2018
Rapid expansion of talent base to 2,543 employees as of December 31, 2017, vs 1,624 as ofDecember 31, 2016
244 employees possessing a Ph.D. or equivalent
Approximately 20% of our employees received stock option grants as of December 31, 2017,enabling the Company to effectively attract and retain talents
Talent expected to reach 4,000 employees by end of 2018 with one of the largest biologicsdevelopment teams with 1,900 scientists expected end of 2018
Appointed five internationally recognized scientists, entrepreneurs and visionary thinkersto our Scientific Advisory Board (SAB)
• 29+ years of experience in FDA regulatory review and GMP compliance of biological and biotech products
• Formerly a Gates Project International Expert for the Center of Food & Drug Inspection (CFDI) of CFDA and an FDA Associate Country Director
13
Further Advance Our Technology Platform
New ADC conjugation and fill/finish facility began construction in mid-2018 and expectedto be GMP ready by the end of 2019
Adoption of 4,000L bioreactors to further compete with stainless steel bioreactors
Currently 2,000L is the largest available
4,000L bioreactors allow batch size of 16,000L or 20,000L, which compete effectively in terms ofscale with stainless steel bioreactors while achieving significant capex and time savings
Two new continuous manufacturing projects initiated in the lab
Continuous production line will be GMP ready by the end of 2018
`
II. Company Introduction
Business Model
Our customers’ demand for our services increases as their biologics advance through development and ultimately to commercialization, which allows our revenue from each project to grow geometrically as the project advances through the biologics development cycle
Our “Follow-the-Molecule” Integrated Solution Model
To accelerate and transform pharmaceutical discovery, development and manufacturing in the fast growing field of biologics to benefit patients worldwide
Our Mission
-
Biologics Development ProcessTypical
DurationTypical Revenue
Pre-IND
Drug Discovery 2 YearsUS$1.5-2.5 mm
(Milestone fee ranges from US$ 10-100 mmRoyalty fee ranges from 3% to 5%)
Pre-Clinical Development 2 Years US$4-6 mm
Post-IND
Early-Phase (Phases I & II) Clinical Development
3 Years US$4-6 mm
Late-Phase (Phase III) Clinical Development
3-5 Years US$20-50 mm
Commercial Manufacturing Annually US$50-100 mm annually
Our Strong Proprietary Technology Platform
Biologics Characterization & Testing Platform
Proprietary Cell Line Development Platform
Biologics Discovery Platform
State-of-the-art Cell Culture Platform
Biologics & ADC Manufacturing Platform
Biologics Formulation Platform
Revenue from each project advances with its stages
15
Drug Discovery
Preclinical Development
Early Phase(Phase I & II)
Late Phase(Phase III)
Commercial Manufacturing
PRE-IND POST-IND
US$1.5-2.5 mm(Milestone fee: US$10-100 mm
Royalty fee: 3% to 5%)
US$4-6 mm US$4-6 mm US$20-50 mm US$50-100 mm(2)Typical Revenue
For Stage:
90 62 8 1
Total: 161On-Going Integrated
Project Numbers(1):
No. of Integrated Projects (1)
75103
134
161
0
50
100
150
200
250
Jun 2016 Dec 2016 Jun 2017 Dec 2017
Integrated Projects (1) By Phases
59
142 0
66
33
3 1
92
35
6 1
90
62
8 10
30
60
90
120
PreclinicalDevelopment
Early Phase Late Phase CommercialManufacturing
Jun 2016 Dec 2016 Jun 2017 Dec 2017
-
Solid Business Progress – Integrated Projects
16Notes: 1. Integrated projects are projects that require us to provide services across different stages of the biologics development process2. Estimated value when a biologic drug reaches peak sales. A biologic drug typically reaches peak sales after a ramp-up period
2017 Pipeline Highlights
17
“Follow-the-molecule” strategy in full motion
Added 58 molecules
into the pipeline in 2017
70.1% total milestone revenue growth: from US$17.4 million in 2016 to US$29.6 million in 2017
1
Commercial
8 Phase III
62 Phase I/II
90 Preclinical
Both internal and externaldiscovery engines
One of the largest pipelines of any company
z
One of the largest pipelines of any company
Several products with billion US$ potentialUS$100mm+ annual manufacturing revenue 6 for global market, 2 for China only
Total:161
68
265
452
1,478
231
432
557
1,002
0
300
600
900
1,200
1,500
Jun 2016 Dec 2016 Jun 2017 Dec 2017
419
241
3324
Service backlog Upcoming Potential Milestone feesTotal Backlog Backlog within 3 Years
476
US$ mm
Solid Business Progress – Backlog
18
• Service backlog almost doubled from 2016 to 2017 despite strong revenue growth
• Upcoming potential milestone fees increased 40x from 2016 to 2017
• Deals like the one with Arcus are one of key drivers for the growth in backlog
Rest of the world
RMB100.9 mm
YoY Growth: 30.0%
Rapid Business Progress in Different Geographic Markets
19
PRC
• Huge potential market for biologics
• Dominant leader with 63.5% market share
• Accounted for 34.1% of total revenue
• Clients increasingly focusing on global market
• Significant milestone and royalty expected
• Hugh opportunities for MAH: 30+ potential programs commercial manufacturing not reflected in the backlog
U.S.
• The largest single regional market
• Accounted for 55.6% of total revenue in 2017
• Significant branding effect
Europe• Second largest biologics market globally
• Accounted for 4.0% of total revenue with tremendous growth potential
• 6 new clients with potential 15 projects established in 2017 vs 0 in 2016 despite 32 established local CDMOs
• Pipeline deal with a Swiss company established with two more in negotiation
• US$55 mm signed contract in 2017
U.S.RMB900.6 mm
YoY Growth: 78.3%
RMB65.3 mm
YoY Growth: 209.5%
Europe PRC
RMB552.0 mm
YoY Growth: 43.3%
Diverse and Strong Customer Base
Expanding Customer Base and Increasing Average Revenue
78
124163
202
2014 2015 2016 2017
Number of Customers Serviced in Each Period
Average Revenue per Customer among the Top 10 Customers in Each Period (RMB mm)
21.6
42.5
65.9
88.4
2014 2015 2016 2017
Selected Customers
Global Big Pharma
Revenue % of the Top 20 and the Top 10 Customers
Mid-Sized Biotech
Chinese Pharma
Proven Track Record with Growing Customer Base
20
331.4 557.0 989.0
1,618.8
85.4% 90.9%80.0%
70.9%65.1%
76.3%66.7%
54.6%
2014 2015 2016 2017Total Rev Top 20 vs. Rev Top 10 vs. Rev
Top 5 Player Globally and Dominant Share in China
Global market shared increased from 1.0% in 2015, 1.8% in 2016 to 2.4% in 2017
Chinese market shared increased from 36.4% in 2015, 48% in 2016 to 63.5% in 2017
Note:
1. Source: Contract Pharma
21
Lonza11.3% BI biologics
7.3% Samsung biologics
3.5%Catalent
2.9%
Wuxi biologics2.4%
CMC biologics1.9%Patheon
1.5%
Others69.2%
Market Share of Global Biologics Outsourcing Market by Revenue in 2017
WuXi Biologics
63.5%Chempartner
10.7%
HD Biosciences
6.3%
GenScript5.8%
JHL Biotech2.9%
Boehringer Ingelheim Biopharmaceuticals
2.6%
AutekBio, Inc.1.2%
Others7.0%
Market Share of China Biologics Outsourcing Market by Revenue in 2017
Access to OMT’s state-of-the-art transgenic animal technology to develop fully human antibodies with high quality, specificity, expression, solubility and stability
Transgenic Animal Technology through Collaboration with OMT1
OmniRat® or OmniMouse®
Perfusion cell culture technology enables continuous manufacturing
Reduces the costs of building a manufacturing facility, reduces manufacturing cost and improves product quality compared to traditional fed-batch manufacturing
Continuous Manufacturing Using Perfusion Technology5
No cleaning and sterilization required for disposable bioreactors that use pre-radiated plastic bags as the production vessel in a stainless holder
A facility using disposable bioreactors can be built 12 to 18 months faster with 30% to 50% less investment, and can produce 5% to 15% more batches of products with a higher success rate compared to traditional stainless steel bioreactors
Disposable Manufacturing Technology4
Leverage and integrate our in-house antibody discovery, toxin and linker development, synthesis and conjugation expertise to deliver the ideal lead ADC molecules
Greatly simplify ADC drug development by providing a supply chain and all the necessary preclinical activities in one centralized region
18 ongoing projects with ADC discovery services
Antibody Drug Conjugate Discovery2
Our own proprietary cell line paired with our own proprietary algorithm is more cost-effective, more efficient and yields better results
License know-how generated during cell line engineering and development process to the customer in exchange for a license fee and future royalty payments
Developed 218 cell lines for therapeutic protein purpose
Cell Line Engineering and Development3
22
State-of-the-Art Technology
Shanghai
Wuxi
Suzhou
Wuxi Shanghai Suzhou Wuxi
Commencement
of Operation
October
2012
October
2011
December
2014
December
2017
Key
Features
ISPE
“Facility of
the Year”
Honorable
Mention
Award
One of the
world’s
first
facilities
using fully
disposable
bioreactors
cGMP
compliant
since 2012
One of the
world’s first
facilities with
a platform
spanning
biologics drug
discovery to
phase III
clinical
development
One of the
world’s
largest
biologics
development
laboratories
First
non-
governm
ent
affiliated
biosafety
testing
facility in
Asia
World’s
largest
disposable
bioreactor-
based
biologics
commercial
manufactur
ing facility,
with total
capacity of
30,000L
23
Current Facilities
24
Rapid Expansion to Enable ̴US$900 mm Peak Manufacturing Revenue
DS Capacity GMP Ready LocationEstimated Peak
Revenue
MFG1 5,000L fed-batch/perfusion 2012 Wuxi US$60 mm
MFG228,000L fed-batch2,000L perfusion
2017 Wuxi US$220 mm
MFG35,200L fed-batch1,500L perfusion
2018 Shanghai US$80 mm
MFG4 10,000L fed-batch/CFB 2019 Wuxi US$100 mm
MFG5 60,000L fed-batch 2020 Wuxi US$360 mm
DP Capacity GMP Ready LocationEstimated Peak
Revenue
DP1 Liquid vial with lyophilization 2013 Wuxi US$15 mm
DP2 Liquid vial with lyophilization 2020 Wuxi US$40 mm
DP3 ADC conjugation and DP 2020 Wuxi US$30 mm
Initiated design and construction of 4 cGMP manufacturing facilities in Wuxi city in 2018
`
III. Financial Overview
Adjusted Net Profit (2)
331.9557.0
989.0
1,618.8
0
600
1,200
1,800
2014 2015 2016 2017
Revenue
RMB mm
98.6 151.7
372.2
608.9
0
300
600
900
2014 2015 2016 2017
Adjusted EBITDA (1)
RMB mm 27.2% 37.6%37.6%
42.0 44.5141.1
252.64.8 26.9
47.6
65.1
74.3
31.9
16.1
46.7 71.4
220.5
408.1
0
140
280
420
2014 2015 2016 2017
RMB mm
8.0%
11.7%
14.3%
22.3%
15.6%
25.2%
RMB mm
Listing ExpenseAdjusted Margin % SBC ImpactUnadjusted Margin % FX Impact (3)
Gross Profit
123.3180.7
389.1
660.6
0
300
600
900
2014 2015 2016 2017
32.4% 39.3% 40.8%
34.6% 41.8% 43.3%
29.7%
37.1%
37.7%
12.7%
14.1%
Notes:
1. Adjusted EBITDA represents net profit before (i) interest income and expense, income tax expenses and (ii) certain non-cash expenses, consisting of share-based compensation, amortization, depreciation and impairment of goodwill and (iii) a foreign exchange loss due to translation loss from the IPO proceeds
2. Adjusted net profit excludes the share-based compensation expenses, Listing expenses and a foreign exchange loss due to translation loss from the IPO proceeds
3. Refers only to a foreign exchange loss due to translation loss from IPO proceeds
26
Phenomenal Financial Performance
Rest of the world (2)
RMB mm
2016 Revenue
United States of America
55.6%
PRC34.1%
Europe 4.0%
Rest of the World6.3%
2017 Revenue
RMB1,618.8 mm
PRCRMB mm
United States of America
107.6
354.6
505.0
900.6
2014 2015 2016 2017
RMB mm
Europe RMB mm
191.3158.8
385.3
552.0
2014 2015 2016 2017
2.6 5.1
21.1
65.3
2014 2015 2016 2017
30.438.6
77.6
100.9
2014 2015 2016 2017
United States of America
51.1%
PRC39.0%
Europe 2.1%
Rest of the World7.8%
RMB989.0 mm
Notes: 1. Geographic breakdown by client headquarters2. Rest of the world primarily includes Canada, Israel, Japan, India, South Korea and Australia
27
Robust Growth Across All Geographic Markets (1)
RMB mm
28
277.5 334.7
681.3
1,049.2
54.4
222.3
307.7
569.6
331.9
557.0
989.0
1,618.8
0
250
500
750
1,000
1,250
1,500
1,750
2014 2015 2016 2017
Pre-IND Services Post-IND Services
31.1%
68.9%
60.1%
64.8%39.9%
16.4%
83.6%
35.2%
Revenue Breakdown by Development Stages
18.3%24.9% 21.7% 21.3%
21.0%
20.9%21.4% 18.7%
23.6%
21.8%17.6%
19.2%
62.9%67.6%
60.7% 59.2%
0%
20%
40%
60%
80%
2014 2015 2016 2017
Direct labor costs Cost of raw materials Overhead
Cost of Services as % of Revenue
37.1% 32.4%
Gross Margin (%)
39.3% 40.8%
29
Steady Improvement of GPM
37.7% 34.6% 41.8% 43.3%
Adjusted Gross Margin (%)
51.0
334.4
428.9
670.6
0
250
500
750
2014 2015 2016 2017
RMB mm
30
Rapid Capex Expansion to Support Revenue Growth
Purchase of Plants and Equipment
31
The majority of our revenue was generated from sales denominated in USD; while most of our cost of services and operational costs were settled in RMB
Accordingly, RMB appreciation against the USD will result in margin pressure
We have started to enter into a series of forward contracts to mitigate currency risk and will continue to closely monitor our FX exposure
Foreign Currency Exposure
(RMB million) 2017 2016 Change
Revenue 1,618.8 989.0 63.7%
Cost of services (958.3) (599.9)
Gross Profit 660.6 389.1 69.8%
Other income 34.7 7.5
Other gains and losses (103.6) (1.5)
Selling and marketing expenses (27.6) (15.3)
Administrative expenses (134.0) (94.6)
Research and development expenses (74.5) (53.3)
Other expenses (16.1) (31.9)
Financial Cost (35.7) (24.2)
Profit before Tax 303.7 175.8 72.8%
Income Tax Expenses (51.1) (34.8)
Profit and total comprehensive income for the period 252.6 141.1 79.0%
Earnings per share – Basic (RMB) 0.24 0.15
Earnings per share – Diluted (RMB) 0.22 0.15
Note: 1. Results may not foot due to rounding
32
2017 Financial Summary
(RMB million) 2017 2016 Change
Adjusted net profit Reconciliation
Net profit 252.6 141.1 79.0%
Share-based Compensation 65.1 47.6 36.8%
Listing Expenses 16.1 31.9 (49.5%)
A foreign exchange loss due to translation loss from the IPO proceeds
74.3 - n/a
Adjusted net profit 408.1 220.5 85.1%
Adjusted EBITDA Reconciliation
EBITDA 453.4 292.8 54.8%
Share-based Compensation 65.1 47.6 36.8%
Listing Expenses 16.1 31.9 (49.5%)
A foreign exchange loss due to translation loss from the IPO proceeds
74.3 - n/a
Adjusted EBITDA 608.9 372.2 63.6%
33
Reconciliation for Adjusted net profit and Adjusted EBITDA
Note: 1. Results may not foot due to rounding
Expand Commercial and Research Manufacturing Capacities
1
Invest in Cutting-edge Technologies through Both In-house Research and Development and Potential Acquisitions
2
Working with Customers through a Variety of Relationships, from a Purely Fee-For-Service Basis to Risk-and-Benefit Sharing Co-developments and Strategic Partnering
3
Leveraging the Existing Market Position to Expand the Customer Base4
Continue to Attract, Train and Retain Quality Talent to Support Our Rapid Growth5
Capitalize on Our Strategic China Location to Provide Customers with a Unique Value Proposition
6
34
Summarize with Growth Strategies
`
Appendix I –Company Information
2012SeptemberSigned contracts to provide development and manufacturing services to WX MedImmune, the FIRSTinnovative biologics co-development JV in China
2016MayDeveloped an IND-enabling package for TESARO to complete the filing of IND application of Tim-3 mAbNovemberEntered into a non-binding MOU with Prima BioMed to form a strategic partnership
2014MayFIRST company to produce biologics in China for clinical trials in the U.S.NovemberFIRST China-based facility awarded an ISPE “Facility of the Year” Honor
2017JuneListed on the Mainboard of HKEXAugustThe U.S. FDA completed Pre-License Inspection (PLI) of WuXi Biologics cGMP manufacturing facilities for production of TMB-355 (ibalizumab), the FIRSTbiologics company passed FDA’s inspection in ChinaSeptemberSelected as Eligible equities in both Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock ConnectDecemberWorld’s largest disposable bioreactor-based biologics commercial manufacturing facility entered into full operation, with total capacity of 35,000L
2010MayWuXi Biopharma was established by Wuxi PharmaTech
2015DecemberExclusive strategic partnership for AstraZeneca’s innovative biologics portfolio in China
2013JuneFormed China’s FIRSTinnovative antibody drug conjugate manufacturing and development partnership with Ambrxand Zhejiang Medicine
36
Key Milestones – the Firsts in China Biologics
• 15+ years of biologics development experience
• Joined the Company in 2011
• 2008 - 2011: COO of Shanghai Celgen Biopharma
• 2005 - 2008: Director and Senior Engineering Consultant of Eli Lilly
• 2000 - 2005: Manager and Process Engineer at Merck
Dr. Zhisheng Chen,Executive Director
and CEO
• 25+ years of biologics development experience
• Joined the Company in 2012, the expert of “the Thousand Talents Plan”
• 2008 - 2012: Senior director of Genzyme
• 2002 - 2008: Senior director of PDL BioPharma (NASDAQ: PDLI)
• 1994 - 2002: Associate director at Merck
Dr. Weichang Zhou, Executive Director,
SVP and CTO
Biologics Development
Dr. Jing Li,SVP
Biologics Discovery
• 20+ years of biologics discovery experience
• Formerly Senior Manager at Novartis and project team leader at Pfizer
• Joined the Company in 2010
• 2007 - Current: Various management roles, mostly recently Director at
WuXi AppTec, responsible for overall management
• 2000 - 2007: SVP and COO of Tanox
• 1998 - 2000: Business planning manager at Biogen
• 1996 - 1998: Senior financial analyst of Merck
Edward Hu,
Non-executive Director
Angus Turner,VP
Business Development
• 15+ years of business development experience
• Formerly head of Sales Europe at Lonza and director of business development for Europe and Asia for AppTec
All members of senior management team have worked at the forefront of the biologics industry with an average of over 20 years of industry experience in their fields of expertise…
Christine Shaohua Lu-Wong,
CFO
• 20+ years of financial management experience
• Most recently CFO at Xueda (NYSE: XUE) and hiSoft (NASDAQ: HSFT)
• Founded the Company in 2010• 1993 - 2000: Founding scientist and research manager of Pharmacopeia • Recent Select Awards:
• Chinese Biopharmaceutical Association (USA) Brilliant Achievement Award (2016)
• SCRIP Intelligence Executive of the Year (2015)
• “The 25 Most Influential People in Biopharma” by FierceBiotech (2015)
Dr. Ge Li, Chairman, Non-
executive Director and Founder
Total 2,543 employees, including one of the largest biologics development teams in the industry with 1,046 scientists (1)
High retention rate of scientists and 244 employees possessing a Ph.D. or equivalent degree in biotechnology, chemistry, and other relevant fields (1)
… Supported by a large team of world-class scientists
Dr. Chiang Syin,CQO
Global Quality Management
• 29+ years of experience in FDA regulatory review and GMP
compliance of biological and biotech products
• Formerly a Gates Project International Expert for the Center of Food & Drug Inspection (CFDI) of CFDA and a FDA Associate Country Director
Jian Dong,VP
Biologics Manufacturing
• 25+ years of bio-manufacturing experience
• Formerly Deputy General Manager at Unilab Bioscience, Vice President at Celgen, and Senior Process Engineer at Eli Lilly and Company
Note: 1. As of December 31, 2017
37
Industry Leading, Experienced and Professional Management Team Supported by a Strong Talent Base
Technical Expertise (1) Flexibility Speed
One of the largest biologics development teams with 1,046 scientists
Total employees amount to 2,543
244 employees with Ph.D. or equivalent degree in biotechnology, and relevant fields
Maximum flexibility as to when and where in the development stage a project can be initiated
≤4 weeks
16-24 weeks
WuXi Industry
Waiting time from contract signing to operation commencement
Superior track record (1)
26 biologics successfully
proceeded to global IND
filing and 38 for China only
clinical trials
218 cell lines and 86 cell-
based bioassays
119 batches of GMP-run
biologics with a 96.6%success rate
Note: 1. As of Dec 31, 2017
✓
✓
✓
State-of-the-Art Technology Unparalleled Capacity
Fully human antibody discovery
Proprietary cell line platform
One of the world’s largest cell culture development lab
Disposable manufacturing technology
Continuous manufacturing technology
Simultaneously conducting more than 30 development projects at various development stages
Already built the world’s largest disposable bioreactor-based biologics commercial manufacturing facilities with a total capacity of 35,000L
38
World-class Technical Capabilities and Capacity to Serve Customers Globally
Enable Chinese customers to reach overseas markets by leveraging the Company’s experience with overseas companies and regulatory authorities
Partner-of-choice for many overseas pharma and biotech companies to facilitate their entry into the Chinese market
Conduct parallel R&D for both China and overseas market simultaneously
- Usually take six to eight years to introduce a biologics approved overseas to China market
- Parallel R&D can substantially reduce time and cost required
Established the first innovative biologics co-development joint venture in China with MedImmune to develop novel biologics for Chinese market
Provided integrated services to Zhejiang Medicine for the development of an advanced ADC therapeutic candidate jointly through the collaboration with Ambrx
The first company to manufacture cGMP compliant ADC for Chinese clients for clinical trials in Australia and New Zealand
World China China World
63.5% market share (1)#1
(RMB bn)
62.7
152.7
326.9
2012 2016 2021E
China biologics market size
39
A Gateway for the Booming China Biologics Market
Note: 1. Source: Contract Pharma
